Hypercholestremia is the leading cause of death and one of the major factor for mayocardial infarction ,ischemic strokes and atherosclerosis .Lovastatin is a drug that lowers serum cholesterol levels in humans. It is produced from the fungus Aspergillus terreus. In this study a new isolate of Aspergillus terreus has been used to produce lovastatin. Different carbon and nitrogen sources have been optimised for efficient yields of lovastatin. A novel substrate, leaves from the spotted gum, has been used for the production of lovastatin from A. terreus strain in solid state fermentation. Production of lovastatin by SSF using various raw substrates can not only decrease the cost of its production but will also improve the economy. Maximum amount of lovastatin was produced using 3% lactose as carbon source and 2% corn meal as a nitrogen source. Lovastatin was also detected in the extracts using eucalyptus as a carbon source. The results were further confirmed by LC-MS and MS-MS fragmentation pattern.